HSBC Holdings plc Plans Quarterly Dividend of $0.50 (NYSE:HSBC)

HSBC Holdings plc (NYSE:HSBC) announced a quarterly dividend on Tuesday, April 30th, Wall Street Journal reports. Shareholders of record on Friday, May 10th will be paid a dividend of 0.50 per share by the financial services provider on Friday, June 21st. This represents a $2.00 dividend on an annualized basis and a dividend yield of 4.41%. The ex-dividend date of this dividend is Thursday, May 9th.

HSBC has raised its dividend payment by an average of 36.2% per year over the last three years and has raised its dividend every year for the last 1 years. HSBC has a payout ratio of 102.1% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect HSBC to earn $6.43 per share next year, which means the company should continue to be able to cover its $6.20 annual dividend with an expected future payout ratio of 96.4%.

HSBC Stock Performance

Shares of HSBC traded up $0.35 during trading hours on Wednesday, reaching $45.33. 248,042 shares of the company traded hands, compared to its average volume of 2,190,587. HSBC has a 1-year low of $35.30 and a 1-year high of $45.35. The stock has a market cap of $171.42 billion, a P/E ratio of 7.76, a price-to-earnings-growth ratio of 1.00 and a beta of 0.58. The stock’s fifty day moving average is $40.26 and its 200 day moving average is $39.34. The company has a debt-to-equity ratio of 0.51, a quick ratio of 0.96 and a current ratio of 0.96.

HSBC (NYSE:HSBC) last announced its quarterly earnings data on Wednesday, February 21st. The financial services provider reported $0.57 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.90 by ($0.33). HSBC had a net margin of 16.13% and a return on equity of 10.80%. The business had revenue of $13.02 billion during the quarter. Equities research analysts anticipate that HSBC will post 6.77 earnings per share for the current fiscal year.

Analysts Set New Price Targets

HSBC has been the topic of a number of recent research reports. BNP Paribas downgraded HSBC from a “neutral” rating to an “underperform” rating in a report on Tuesday, January 16th. Barclays reaffirmed an “equal weight” rating on shares of HSBC in a research note on Wednesday, March 27th. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $761.75.

About HSBC

HSBC Holdings plc provides banking and financial services worldwide. The company operates through Wealth and Personal Banking, Commercial Banking, and Global Banking and Markets segments. The Wealth and Personal Banking segment offers retail banking and wealth products, including current and savings accounts, mortgages and personal loans, credit and debit cards, and local and international payment services; and wealth management services comprising insurance and investment products, global asset management services, investment management, and private wealth solutions.